The narrator explains that Edmund isn't really evil, like the witch. He is greedy – he wants more Turkish Delight, and he wants to be a prince, and he wants to get back at Peter.
After a while, Edmund realizes the lion hasn't moved. He comes closer to it and discovers that it is a statue. It's one of the animals that the Witch turned to stone!
Just as everyone is almost asleep on their feet, Mr. Beaver leads the children into a small cave hidden in the bank. Mr. Beaver explains that it is a secret hiding-place for beavers and he's led them to it so they can sleep for a few hours.
Mrs. Beaver and the children come out of the cave into daylight. Outside, they see Father Christmas (Santa Claus) on a sledge driven by reindeer. Everyone feels excited, but also solemn, because Father Christmas is more impressive than they expected.